During the past two funding cycles, this project has evaluated the ability of patients with Alzheimer's disease (AD) to process emotional information. In the present application we propose that processing emotional information is intimately related to 'theory of mind' because explaining the behavior of others often entails reasoning based on people's emotional states as well as their mental state. It therefore seems appropriate to test the dissociability and boundaries of the ability to process emotional information and to make inferences about mental states in others. In the next funding period we therefore propose to conduct three interrelated studies: 1) Study 1: We will examine the ability of AD patients to infer mental states in others. 2) emotional information and the ability to make small inferences about mental states, using parallel sets of stimuli. 3) Study 3: We will determine whether the findings of Study 1 and Study 2 (which will be conducted in an ethnically homogenous population) generalize to individuals with differing ethnic backgrounds.